Large-cap altcoins like Ether (ETH) and XRP recorded modest gains in the early hours of Wednesday after the U.S. Senate voted to advance a war powers resolution to force President Donald Trump to end the Iran war, unless he receives congressional approval to continue it.
ETH, XRP post gains as Iran war fears subside
ETH, the second largest cryptocurrency with a reported market cap of more than $257B gained about 2.09 percent over the past 24 hours. The following 2-hour chart shows the digital asset rising from around $2,080 to $2,133.
Similarly, XRP – holding a market cap of slightly more than $84.7B – recorded gains to the tune of 2.07 percent over the past 24 hours. The cryptocurrency jumped from around $1.30 to $1.37 earlier today, before losing some of its gains.
The improvement in sentiment comes after 5 days of continuous losses in risk-on assets. The top cryptocurrency, Bitcoin (BTC), fell from around $82,000 to $76,000.
At the same time, U.S. Treasury bonds recorded high yields, while crypto exchange-traded funds (ETFs) continued to see outflows. Data from SoSoValue shows that the U.S.-based spot ETH ETFs have seen continual net outflows since May 11, cumulatively worth more than $370M.
In contrast, spot XRP ETFs have shown resilience despite the challenging market conditions. The following table shows consistent net inflows to these financial products since May 4, totalling more than $93M.
Are altcoins falling out of favor?
While the positive sentiment seen in ETH and XRP is encouraging, institutions are reading the current market situation in a pessimistic manner. On Tuesday, it came to light that Goldman Sachs had completely exited their position in XRP and Solana (SOL) ETFs.
However, JPMorgan is quietly building on Ethereum, as it recently launched its second tokenized money market fund on the network. That said, exchange data from Binance on Tuesday showed that ETH is starting to show a pre sell-off pattern.